Firms demand labor and an input to production. The cost of labor to a firm is called the wage rate. This can be thought of as the firm’s marginal cost. The additional revenue generated by hiring one more unit of labor is the marginal revenue product of labor (MRPL).
What happens as a firm increases the number of workers that hires?
The demand curve is downward sloping due to the law of diminishing returns. What happens as a firm increases the number of workers that it hires? Both the marginal product of labor and the marginal revenue product of labor decrease.
Which of the following best describes the marginal revenue of an additional salesperson at a car dealership?
Which of the following best describes the marginal revenue from an additional salesperson at a car dealership? The increase in revenue to the dealership because of that employee.
Which term refers to the change in a firm’s total cost from employing an additional unit of an input?
Marginal Revenue Cost (MRC) The amount of total cost of employing a resource increases when a firm employs 1 additional unit of resource; equal to the change in the total cost of the resource divided by the change in the qty of the resource employed.
How much labor will a profit maximizing firm hire if?
Explanation: A profit maximizing firm will hire labor until the marginal product of labor is greater than the wage rate. If the marginal product of labor is greater than the wage rate, then the firm should hire more labor until the two values are equal.
What are the three main determinants of resource demand?
Economics.
Which of the following factors shifts the labor supply curve?
The supply curve for labor will shift as a result of a change in worker preferences, a change in nonlabor income, a change in the prices of related goods and services, a change in population, or a change in expectations.
Which of the following best describes marginal revenue product quizlet?
Which of the following best describes the marginal revenue product of a resource? It equals the extra output produced by an additional unit of the resource multiplied by the marginal revenue per unit of that output.
Which of the following statements best defines a labor market?
It is adding jobs. -best describes the labor market in the field of healthcare. This answer has been confirmed as correct and helpful.
When do firms hire additional units of Labor?
A profit-maximizing firm will hire additional units of labor until: a. the additional cost of… A profit-maximizing firm will hire additional units of labor until: a. the additional cost of hiring the last worker equals the additional revenue generated by that worker
When does a company recognize accrued revenue as income?
When a company has performed services or sold goods to a customer, it should be recognized as income even if the amount is still to be collected at a future date. These are know as accrued income (or accrued revenue).
How to adjust entry for accrued revenue-accountingverse?
The $900 interest pertains to 1 year. However, 1 month has already passed. The company is already entitled to 1/12 of the interest, as prorated. Therefore the adjusting entry would be to recognize $75 (i.e. $900 x 1/12 ) as interest income:
Which is an example of adjusting entry for accrued income?
More Examples: Adjusting Entries for Accrued Income Example 1: Company ABC leases its building space to a tenant. The tenant agreed to pay monthly rental fees of $2,000 covering a period from the 1st to the 30th or 31st of every month.
